SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE THREE MONTHS ENDED DECEMBER 31, 1998
BOONTON ELECTRONICS CORPORATION
State: New Jersey Identification No. 22-1543137
File No. 0-2364
Address: 25 Eastmans Road, P. O. Box 465,
Parsippany, New Jersey 07054-0465
Telephone: 973-386-9696
"Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days."
YES [X] NO [ ]
Shares Outstanding:
DECEMBER 31, 1998 2,387,332
DECEMBER 31, 1997 1,644,301
1
<PAGE>
(Unaudited)
BOONTON ELECTRONICS CORPORATION
<TABLE>
<CAPTION>
Assets December 31, 1998 September 30, 1998
------ ----------------- ------------------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 47,429 $ 113,812
Trade receivables 844,593 1,299,281
Inventories 1,542,061 1,444,245
Deferred tax benefits 86,000 86,000
Other current assets 442,212 318,442
----------- -----------
Total current assets 2,962,295 3,261,780
----------- -----------
Plant and equipment-net 438,241 457,160
----------- -----------
Other assets:
Deferred tax benefit 927,129 927,129
Security deposits 70,121 70,121
----------- -----------
Total other assets 997,250 997,250
----------- -----------
Total assets $ 4,397,786 $ 4,716,190
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:
Note payable $ 69,032 $ 73,333
Related party loans 43,530 43,530
Accounts payable - trade 605,839 783,247
Other current liabilities 233,829 527,366
Unsecured claims payable (Chapter 11
settlement) current 144,993
----------- -----------
Total current liabilities 952,230 1,572,469
Note payable - noncurrent 289,840 307,496
Related party loans - noncurrent 218,970 218,970
----------- -----------
Total liabilities 1,461,040 2,098,935
----------- -----------
Commitments and contingencies
Stockholders' equity:
Common stock 238,733 164,430
Capital in excess of par 5,005,563 4,637,866
Deficit (2,307,550) (2,185,041)
----------- -----------
Total stockholders' equity 2,936,746 2,617,255
----------- -----------
Total liabilities and stockholders' equity $ 4,397,786 $ 4,716,190
=========== ===========
</TABLE>
The accompanying footnotes are an integral part of these statements.
2
<PAGE>
(Unaudited)
BOONTON ELECTRONICS CORPORATION
<TABLE>
<CAPTION>
For the Three Months Ended
December 31, 1998 December 31, 1997
----------------- -----------------
<S> <C> <C>
Net sales $ 1,507,840 $ 1,657,200
Cost of goods sold 875,998 857,575
----------- -----------
Gross profit 631,842 799,625
----------- -----------
Operating expenses:
Commissions 136,098 194,395
Research and development 234,534 235,376
Other operating expenses 357,270 351,638
----------- -----------
Total operating expenses 727,902 781,409
----------- -----------
Income/(loss) from operations (96,060) 18,216
----------- -----------
Interest expense 14,487 13,534
Other expense/(income) 11,564 (13,527)
----------- -----------
Total other expenses 26,051 7
----------- -----------
Income/(loss) before provision for
income taxes (122,111) 18,209
Provision for income taxes 398 --
----------- -----------
Net income/(loss) (122,509) 18,209
Stockholders' equity - beginning 2,617,255 2,449,296
Common stock sold 442,000 25,000
----------- -----------
Stockholders' equity - ending $ 2,936,746 $ 2,492,505
=========== ===========
Weighted average number of shares
outstanding 2,243,775 1,644,301
=========== ===========
Earnings/(loss) per share: $ (0.05) $ 0.01
=========== ===========
</TABLE>
The accompanying footnotes are an integral part of these statements.
3
<PAGE>
(Unaudited)
BOONTON ELECTRONICS CORPORATION
<TABLE>
<CAPTION>
For the Three Months Ended
December 31, 1998 December 31, 1997
------------------ -----------------
<S> <C> <C>
Cash provided/(used) by operations:
Net income $(122,509) $ 18,209
Adjustments to reconcile net income:
Depreciation & amortization 21,929 20,130
(Gain) on sale of fixed assets (150) (3,700)
Decrease/(increase) in current assets:
Accounts receivable 454,688 145,237
Inventories (97,816) (86,154)
Other current assets (123,770) (48,699)
Increase/(decrease) in current liabilities:
Accounts payable (177,408) 78,159
Chapter 11 settlement - current (144,993) (48,491)
Accrued liabilities (293,537) (78,401)
--------- ---------
Net cash provided/(used) by operations (483,566) (3,710)
--------- ---------
Cash flows from investing activities:
Purchase of equipment (3,010) (565)
Proceeds from sale of assets 150 3,700
--------- ---------
Net cash provided/(used) by investing activities (2,860) 3,135
--------- ---------
Cash flows from financing activities:
Payments on loans (21,957) (65,380)
Proceeds from sale of stock 442,000 25,000
--------- ---------
Net cash provided/(used) by financing activities 420,043 (40,380)
--------- ---------
Increase/(decrease) in cash and cash equivalents (66,383) (40,955)
Cash and cash equivalents at beginning of period 113,812 121,620
--------- ---------
Cash and cash equivalents at end of period $ 47,429 $ 80,655
========= =========
</TABLE>
The accompanying footnotes are an integral part of these statements.
4
<PAGE>
(Unaudited)
BOONTON ELECTRONICS CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND
DESCRIPTION OF BUSINESS:
A. The Company is a New Jersey corporation organized in 1947. The Company
designs and produces electronic testing and measuring instruments
including power meters, voltmeters and modulation meters. Recent models
are microprocessor controlled and are often used in computerized
automatic testing systems. The Company's equipment is marketed
throughout the world to commercial and government customers in the
electronics industry.
The Company markets and distributes its products throughout the United
States and abroad through some 15 domestic sales representatives and 24
foreign distributors. Representatives sell on a commission basis, while
distributors buy products for resale at discounted ex-factory prices.
Its representatives and distributors also handle the products of other
manufacturers, although these are not generally competitive with the
Company's products except that some items handled by foreign
distributors may be somewhat competitive.
B. Use of estimates - The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
C. The company accounts for uncollectible accounts under the direct
write-off method whereas generally accepted accounting principals
require provision for such expenses under the allowance method. The
effect of using this method approximates the allowance method as all
amounts are deemed to be fully collectible.
D. Inventories - stated at the lower of cost or market determined by the
first-in, first-out (FIFO) method.
E. Plant and equipment - Depreciation and amortization are calculated by
the straight-line method for financial reporting purposes at rates
based on the following estimated useful lives:
Building and improvement 39
Machinery and equipment 5-10
Office furniture and fixtures 5-10
Transportation equipment 3
5
<PAGE>
(Unaudited)
BOONTON ELECTRONICS CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
The accelerated cost recovery system and modified accelerated cost
recovery system is used for income tax purposes. Cost of major renewals
and betterments that extend the life of the property and equipment are
capitalized. Expenditures for maintenance and repairs are charged to
expenses as incurred.
F. Financial risk - The Company regularly maintains bank account balances
in excess of FDIC insurable limit.
G. Income Taxes - The Company adopted the provisions of Statement of
Financial Accounting Standards No. 109, "Accounting for Income Taxes"
which requires a company to recognize deferred tax liabilities and
assets for the expected future tax consequences of events that have
been recognized in a Company's financial statements or tax returns.
Under this method, deferred tax liabilities and assets are determined
based on the differences between the financial statement carrying
amounts and tax basis of assets and liabilities using expected tax
rates in effect in the years in which the differences are expected to
reverse. The Company recognized the benefit of net operating loss
carryforwards applying the valuation allowance, which requires that the
tax benefit be limited, based on the weight of available evidence and
the probability that some portion of the deferred tax asset will not be
realized.
H. Financial Instruments - The Company's financial instruments include
cash, cash equivalents, trade receivables and payables, long-term debt
and loans from related parties for which carrying amounts approximate
fair value. It is not practicable to estimate the fair value of related
party loans and long-term debt.
I. Stock-Based Compensation - The Company has elected to follow Account
Principles Board Opinion No. 25, Accounting for Stock Issued to
Employees (APB25) and related interpretations in accounting for its
employee stock options. Under APB25, because the exercise price of
employee stock options equals the market price of the underlying stock
on the date of grant, no compensation expense is recorded. Effective
October 1, 1997, the Company has adopted the disclosure only provisions
of Statement of Financial Accounting Standards No. 123, Accounting for
Stock-Based Compensation (Statement 123).
6
<PAGE>
(Unaudited)
BOONTON ELECTRONICS CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
NOTE 2 - PROCEEDINGS UNDER CHAPTER 11:
The Company operated under Chapter 11 proceedings for the period
September 7, 1993 through November 15, 1994 when, on the later date, the order
confirming the Plan of Reorganization was entered by the United States
Bankruptcy Court, District of New Jersey. The settlement of unsecured claims
under the confirmed Plan of Reorganization totaling 35% of allowed claims for
accounts payable and accrued expenses provided for the following payments to be
made subsequent to November 15, 1994:
%
---
10 From after tax proceeds from termination of the company's
pension plan
5 One year after initial payout
5 Two years after initial payout
15 Three years after initial payout
Pre-petition liabilities in accordance with the November 15, 1994
confirmed plan of reorganization were compromised of the following:
Accounts payable $ 702,233
Accrued expenses:
Commissions payable 126,370
Vacation pay 96,250
Severance pay 25,108
Other 78,282
---------
Total September 30, 1994 1,028,243
Court authorized payments/adjustments (75,073)
---------
Balance subject to settlement 953,170
Amount discharged and/or paid to date (953,170)
---------
Chapter 11 settlement total December 31,1998 $ --
=========
7
<PAGE>
(Unaudited)
BOONTON ELECTRONICS CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
NOTE 3 - INVENTORIES
December 31,1998 September 30,1998
---------------- -----------------
Raw material $ 798,342 $ 707,729
Work in process 564,535 532,470
Finished goods 179,184 204,046
---------- ----------
Total inventories $1,542,061 $1,444,245
========== ==========
NOTE 4 - PLANT AND EQUIPMENT:
December 31,1998 September 30,1998
---------------- -----------------
Building and improvements $ 62,329 $ 62,329
Machinery and equipment 1,673,078 1,670,068
Office furniture and fixtures 582,518 582,518
Transportation equipment 13,188 13,188
---------- ----------
Total 2,331,113 2,328,103
Less Accumulated depreciation 1,892,872 1,870,943
---------- ----------
Net depreciated cost $ 438,241 $ 457,160
========== ==========
NOTE 5 - NOTES PAYABLE
December 31,1998 September 30,1998
---------------- -----------------
A. Board of Directors:
Notes, subordinated to NJEDA
loan, dated February 6, 1995,
payable in monthly installments of
$5,449 including interest at 9% per
annum through September 30, 2001: $ 262,500 $ 262,500
Less current portion 43,530 43,530
---------- -----------
Noncurrent portion $ 218,970 $ 218,970
========== ===========
Interest expense for the fiscal years ended September 30, 1998 and 1997 amounted
to $24,035 and $24,757, respectively. No principal payments were made due to
these notes being subordinated to the NJEDA loan.
8
<PAGE>
(Unaudited)
BOONTON ELECTRONICS CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
December 31,1998 September 30,1998
---------------- -----------------
B. New Jersey Economic Development
Authority:
Notes, dated July 31, 1996, payable in
Monthly installments of $7,620
Including interest at 6.75% per
annum through June 30, 2003: $ 358,872 $ 380,829
Less current portion 69,032 73,333
---------- -----------
Noncurrent portion $ 289,840 $ 307,496
========== ===========
Interest expense for the fiscal years ended September 30, 1998 and 1997 amounted
to $28,061 and $23,066, respectively. Future principal payments under the terms
of the agreement are as follows:
Fiscal Year Amount
----------- ----------
1999 $ 73,333
2000 72,647
2001 77,778
2002 83,271
2003 73,800
----------
TOTAL: $ 380,829
==========
NOTE 6 - CONCENTRATION OF CREDIT RISK:
The Company maintains cash and cash equivalents at three financial
institutions that are insured by the Federal Deposit Insurance Corporation
(FDIC) and/or Securities Investor Protection Corporation (SIPC). The Company at
times during the year had amounts in these institutions that exceeded insurable
limits of $100,000 FDIC and $500,000 SIPC. In the normal course of business the
Company extends unsecured credit to customers in the United States and Asia.
9
<PAGE>
(Unaudited)
BOONTON ELECTRONICS CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
NOTE 7 - COMMITMENTS AND CONTINGENCIES:
Commitments:
A. Retirement Plans:
Effective July 1, 1989, the Company adopted a defined contribution
plan for all eligible employees. In accordance with Internal
Revenue Code Section 401(k), the plan provides for elective
deferral of up to 15% of total compensation. The plan further
provided for a Company matching contribution of 25% of the elective
deferral amount of each participant that did not exceed 6% of total
compensation. Effective January 1, 1994, the matching Company
contribution was suspended due to the company's financial condition
and pending reorganization. Effective October 1, 1995, the Company
reinstated a matching contribution at 50% of the elective deferral
amount for each participant that does not exceed 6% of total
compensation. The amounts charged to operations were $33,792 and
$37,581 for the years ended September 30, 1998 and 1997,
respectively.
B. Employee Stock Options Plans:
On February 26, 1987, the Stockholders approved the 1987 Incentive
Stock Option Plan, the 1987 Employee Stock Purchase Plan and the
1987 Stock Option Program for Non-Employee Directors. Subject to
the provisions of these plans, an aggregate of 150,000 shares of
the Company's stock was made available for option purchases;
namely, 75,000 shares, 37, 500 shares and 37,500 shares,
respectively. The plans ended effective December 1996 and no
further grants may be made for options.
10
<PAGE>
(Unaudited)
BOONTON ELECTRONICS CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
Option
--------------------------------------
Price per share Number of shares
--------------- ----------------
Shares under option at
September 30, 1995 $ 1.0625 81,250
Exercised $ 1.0625 (34,500)
Expired $ 1.0625 (250)
-------
Shares under option at
September 30, 1996 $ 1.0625 46,500
Expired $ 1.0625 (20,000)
-------
Shares under option at
September 30, 1997 & 1998 $ 1.0625 26,500
=======
Lease Commitments:
Subsequent to the sale of the Company's facility in Randolph, New
Jersey on September 28, 1994, the company entered into a seven-year
lease for its present office and manufacturing facility in Hanover
Township, New Jersey with a five-year renewal option. Rent charged
to operations for the fiscal year ended September 30, 1998 was
$227,400. Annual rent for the initial seven-year term is $227,400
for the first four years and $300,000 for years five through seven.
Future minimum lease payments required under the operating lease
are as follows:
Fiscal year Amount
----------- ------
1999 $300,000
2000 300,000
2001 300,000
The Company leases office equipment under a five-year operating
lease with an option to upgrade after three years that it intends
to exercise. The annual lease payment for the term of the lease is
$17,617. Future lease payments required under the operating lease
are as follows:
11
<PAGE>
(Unaudited)
BOONTON ELECTRONICS CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
Fiscal year Amount
----------- ------
1999 $ 17,617
2000 17,617
2001 1,468
Contingencies:
A. Environmental Contingencies:
Following an investigation by the New Jersey Department of
Environmental Protection (NJDEP) of the Company's waste disposal
practices at a certain site that it formerly leased, the Company
put a ground water management plan into effect as approved by the
Department. Costs associated with this site are charged directly to
income as incurred. The owner of this site has notified the Company
that if the NJDEP investigation proves to have interfered with a
sale of the property, the owner may seek to hold the Company liable
for any loss it suffers as a result. However, corporate counsel has
informed management that, in their opinion, the lessor would not
prevail in any lawsuit filed due to the imposition by law of the
statute of limitations.
Costs charged to operations in connection with the water management
plan amounted to $57,205 and $43,173 for the years ended September
30, 1998 and 1997, respectively. The Company estimates the
expenditures in this regard for the fiscal year ending September
30, 1999 will amount to approximately $52,000. The Company will
continue to be liable under the plan in all future years until such
time as the NJDEP releases it from all obligations applicable
thereto.
B. Contingent Subscription and Option Agreement:
On June 30, 1997, the Board of Directors of Boonton Electronics
Corporation (BEC) agreed to enter into a Subscription and Option
Agreement with G.E.M. USA, Inc. (GEM), a wholly-owned subsidiary of
General Electronique Mesure, S.A., whereby GEM shall have the
option to buy 435,984 shares of the common stock of BEC at an
option price of $3.24 per share. The term of the option agreement
shall be for a period of two years. GEM paid BEC $25,000 for this
option and simultaneously purchased 7,716 shares of BEC's common
stock from the corporation for $25,000.
12
<PAGE>
(Unaudited)
BOONTON ELECTRONICS CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
Further, on June 30, 1997, the Board of Directors of BEC resolved
to enter into a Shared Facilities Agreement with B&K Precision,
Inc. (B&K), a wholly-owned subsidiary of GEM, as additional
consideration for the above noted option. B&K shall pay BEC a
monthly management fee of $15,000 and shall also pay rent at the
same price per square foot as BEC for the area sublet to B&K.
The effective date on both of the above-noted agreements was
October 1, 1997, one day subsequent to the fiscal year end,
September 30, 1997. The company also received the payment of
$50,000 on October 1, 1997.
C. Income Tax Contingencies:
The Company's income tax returns for the fiscal years ended
September 30, 1996, 1997 and 1998 are subject to review.
NOTE 8 - COMMON AND TREASURY STOCK:
<TABLE>
<CAPTION>
December 31,1998 September 30,1998
---------------- -----------------
<S> <C> <C>
Common Stock:
$.10 par value, authorized 5,000,000
shares, issued and outstanding 2,387,332
shares and 1,644,301 shares, respectively. $ 238,733 $ 164,430
========= =========
</TABLE>
NOTE 9 - INCOME TAXES:
The components of the deferred tax asset are:
December 31,1998 September 30,1998
---------------- -----------------
Deferred tax asset $2,867,591 $2,867,591
Less: Valuation allowance (1,854,462) (1,854,462)
---------- ----------
Net deferred tax asset $1,013,129 $1,013,129
========== ==========
Financial Accounting Standards Board Statement No. 109, "Accounting for
Income Taxes", requires that the Company record a valuation allowance when it is
"more likely than not that some portion or all of the deferred tax assets will
not be realized". It further states that "forming a conclusion that a valuation
allowance is not needed is difficult when there is negative evidence such as
cumulative losses in recent years".
13
<PAGE>
(Unaudited)
BOONTON ELECTRONICS CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
The ultimate realization of this deferred income tax asset depends on
the ability to generate sufficient taxable income in the future. The Company is
undergoing substantial restructuring changes and has made strategic realignments
of its operations in association with its Plan or Reorganization that management
believes will result in future profitability. While it is management's belief
that these measures will allow the total deferred income tax asset to be
realized by future operating results, the losses in recent years and a desire to
be conservative make it appropriate to record a valuation allowance.
Accordingly, the Company has provided a valuation allowance (based on
estimated future taxable income) for the portion of the total deferred income
tax asset that will not be realized as related to the operating loss
carryforward.
Income tax laws allow for the utilization of loss carryforwards over
periods not to exceed 15 and 7 years for Federal and State purposes,
respectively. If the Company is not able to generate sufficient taxable income
in the future through operating results, increases in the valuation allowance
will be required through a charge to expense (reducing stockholder's equity). In
the event the Company reports sufficient profitability to use all of the
deferred income tax assets, the valuation allowance will be eliminated through a
credit to expense (increasing stockholder's equity).
The following is a reconciliation of income taxes at the federal
statutory rate.
December 31,1998 September 30,1998
---------------- -----------------
Computed income taxes at statutory rate $ -- $ 6,191
Recognition of net operating loss -- (6,191)
------- -------
Expense/(benefit) $ -- $ --
======= =======
The Company has net operating loss carryforwards for federal and state
purposes approximating $6,067,151 and $8,063,752 that will not begin to expire
until the year 2011 and 2003 respectively. These loss carryforwards can be
utilized to reduce future taxable income dollar for dollar.
14
<PAGE>
(Unaudited)
BOONTON ELECTRONICS CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
NOTE 10 - SEGMENT INFORMATION:
The Company is engaged in the manufacture and sale of electronic test
and measurement equipment and management considers its business as a single
segment for reporting purposes.
A. The Company's export sales were as follows:
Three Months Ended % of
December 31, Amount Total Sales
------------------ ------ -----------
1998 $595,136 39%
1997 $838,158 51%
B. Customers sales to domestic government agencies were as follows:
Three Months Ended % of
December 31, Amount Total Sales
------------------ ------ -----------
1998 $195,947 13%
1997 $ 55,438 3%
NOTE 11 - EARNINGS PER SHARE:
Earnings per share have been computed by dividing net earnings by the
weighted average number of common shares outstanding of 2,243,775 for 1998 and
1,644,301 for 1997. Options to purchase a total of 428,268 shares of common
stock at $3.24 per share were not included because the exercise price exceeded
the average market price, which would result in antidilution. Incentive stock
options to purchase 26,500 shares in 1998 and in 1997 were not included because
they were insignificant.
15
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF INCOME STATEMENTS
THREE MONTHS ENDED DECEMBER 31, 1998
Although the results for the first fiscal quarter were disappointing,
management expects fiscal 1999 to be profitable. Bookings for new orders in the
first quarter were $1,847,227 and the backlog increased by $334,755 to
$1,316,423.
Sales for the three months ended December 31, 1998 were $149,360 below
the prior year. A decline in export revenues of $243,022 was offset by an
increase in military contract revenues. Gross profit declined by $18,423 due to
the reduced sales volume. Operating costs declined by $53,507 below the prior
year due to reduced commission expense. The loss from operations was $96,060 and
the net loss was $122,509 primarily due to the reduced volume.
The December 31, 1998 inventory was $97,816 higher than the September 30, 1998
balance of $1,444,245. Trade receivables were down $454,688 from the September
30, 1998 balance of $1,299,281 due to the reduced sales volume. The current
ratio increased to 3.1 versus 2.1. In October, 1998 the final payment to
unsecured creditors was made.
16
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
BOONTON ELECTRONICS CORPORATION
By: /s/ YVES GUYOMAR
-------------------------------------
Yves Guyomar, President and Chief
Executive Officer
Date: January 29, 1999
By: /s/ JOHN E. TITTERTON
-------------------------------------
John E. Titterton, Vice President
Finance, Secretary/Treasurer
Date: January 29, 1999
January 29, 1999
17
<PAGE>
BOONTON ELECTRONICS CORPORATION
INDEX TO EXHIBIT FILED
IN THE QUARTERLY REPORT ON FORM 10-QSB
FOR THE THREE MONTHS ENDED DECEMBER 31, 1998
Exhibit No. Page
- ----------- ----
27 Financial Data Sheet 19
18
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000013191
<NAME> Boonton Electronics Corp.
<MULTIPLIER> 1
<CURRENCY> USD
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-START> JAN-01-1999
<PERIOD-END> DEC-31-1998
<EXCHANGE-RATE> 1
<CASH> 47,429
<SECURITIES> 0
<RECEIVABLES> 844,593
<ALLOWANCES> 0
<INVENTORY> 1,542,061
<CURRENT-ASSETS> 2,962,295
<PP&E> 2,331,113
<DEPRECIATION> 1,892,872
<TOTAL-ASSETS> 4,397,786
<CURRENT-LIABILITIES> 952,230
<BONDS> 0
0
0
<COMMON> 238,733
<OTHER-SE> 2,698,013
<TOTAL-LIABILITY-AND-EQUITY> 4,397,786
<SALES> 1,507,840
<TOTAL-REVENUES> 1,507,840
<CGS> 875,998
<TOTAL-COSTS> 727,902
<OTHER-EXPENSES> 11,564
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 14,487
<INCOME-PRETAX> (122,111)
<INCOME-TAX> 398
<INCOME-CONTINUING> (122,509)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (122,509)
<EPS-PRIMARY> (.05)
<EPS-DILUTED> (.05)
</TABLE>
